Pause Franchisor Inc.

The franchise has grown from 3 to 8 units in 3 years with zero exits. Can you provide specific unit names/locations and confirm these figures with documentation from your disclosure documents?

Can you explain why the technology fee of $800/month is $83-$601 above the typical range for fitness franchises, and what specific services and platforms this covers?

Your ad fund rate of 1.0% is half the typical 2.0% for this category. How is the marketing fund calculated and deployed, and do you have actual marketing spend reports for existing franchisees?

The contract identifies 23 non-curable defaults allowing immediate termination, exceeding the typical range of 15-21. Can you provide the full list of these defaults and explain the rationale for each?

Item 19 financial performance shows median sales of $1.57M, significantly above typical fitness franchises. How many units reported these figures, what is the range of unit ages, and are these figures audited or provided by franchisees?

Given zero litigation cases historically, can you confirm whether any disputes with franchisees have been resolved through arbitration, mediation, or settlement outside of formal litigation?

The contract requires mandatory binding arbitration and waives class action and jury trial rights. Has this arbitration clause been tested, and can you provide examples of any disputes that went through arbitration?

What are the specific capital expenditure and remodeling requirements for renewal after the initial 10-year term, and are there any caps on these costs?

Can you provide the list of approved suppliers and specify which of the 5 supply categories (if any) allow price competition or dual-sourcing options?

The contract grants the franchisor authority to establish additional techniques, procedures, and supplies beyond what is currently specified. What limits or approval processes apply to these future changes?

What is the actual number of units that have reported financial data for Item 19, and do you have performance data segregated by unit age (first year, 2-3 years, 4+ years)?

Can you clarify the minimum insurance requirements referenced in the 3-day cure period for insurance failures, and what happens if a franchisee cannot obtain required coverage?

For the 30-day cure period on other defaults, can you provide examples of defaults that fall into this category versus the 23 non-curable defaults?

What training and support programs are included in the initial investment, and are there ongoing training costs beyond the $800/month technology fee?

The non-compete is 2 years/15 miles post-termination or non-renewal. Does this apply equally to voluntary closures, and are there geographic exceptions for franchisees in smaller markets?

Can you provide the criteria for the 9 renewal conditions and explain what happens if a franchisee fails to meet any single condition?

What is the breakdown of your current 8 units by performance tier (top, middle, bottom quartile), and how many have been operating for the full 3-year period shown in your unit history?

The $10,000 renewal fee is stated, but are there also transfer fees, remodeling costs, or other fees due upon renewal, and can you cap the total renewal costs in writing?

Has any franchisee chosen not to renew after their initial 10-year term, and if so, what were the stated reasons?